Unconventional path dependence: How adopting product take-back and recycling systems contributes to future eco-innovations

Haiyan Wang, Donato Masi, Lalitha Dhamotharan, Steven Day, Ajay Kumar, Tong Li and Gurmeet Singh

Journal of Business Research, 2022, vol. 142, issue C, 707-717

Abstract: Eco-innovation (EI) allows organizations to achieve environmental and economic gains but the conditions for successful EI to occur are unclear. This paper proposes that firms can improve their EI performance by adopting circular economy (CE) systems and technologies, such as product take-back and recycling. We thus explore an unconventional, systems- and technology-driven path dependence dynamic leading to higher EI performance because of prior CE commitments (instead of managerial initiatives directly aimed at fostering EI). An analysis of 724 firms shows that the adoption of such technologies and systems puts firms on a sustainability path: firms benefit from making further changes to improve the functioning of these systems, which in turn create the conditions and capabilities for future EIs. Environmental supply chain policies thus mediate the relationship as the firm adopting take-back and recycling needs to involve outside partners in their administration. Neither environmental management systems nor data protection policies act as mediators. This is the first quantitative study that considers take-back and recycling and EI scores with a cross-national-cross-sectorial sample size. The results indicate that firms should see the introduction of CE systems and technologies as an opportunity for EI.

Keywords: Eco-innovation; Circular economy; Environmental supply chains; Environmental management systems (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:142:y:2022:i:c:p:707-717

DOI: 10.1016/j.jbusres.2021.12.057

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